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Okay here's one for you...I bought a house in Nov. 1998. I have renovated it and it is now on the market to be sold. I have never lived in it and it was never rented out. I have a couple of questions:

Can I write off the closing cost of the purchase (no points were payed), usually you can with a primary residency but what about with an investment house?

Also, what forms are to be filled out to claim my renovation expenses for this house, turbo tax keeps sending me to the Sch. E, (rental properties...)is this correct?

Help,
Dvaid
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[[Okay here's one for you...I bought a house in Nov. 1998. I have renovated it
and it is now on the market to be sold. I have never lived in it and it was never
rented out. I have a couple of questions:

Can I write off the closing cost of the purchase (no points were payed), usually
you can with a primary residency but what about with an investment house?]]

Nope. And, just for your information, you can't write off "closing costs" for a personal residence either. You get points, prorated interest, and prorated taxes. And that's it. Your other closing costs will add to your cost basis of the property.

[[ Also, what forms are to be filled out to claim my renovation expenses for this
house, turbo tax keeps sending me to the Sch. E, (rental properties...)is this
correct?]]

You don't GET a deduction for your revnoation expenses. Again, those costs are simply an increase to the basis of the property. There is no place on the return to "report" these improvements to the property, since they are not deductible. Again, they add to the basis of the property.

Sorry for the bad news...
TMF Taxes
Roy
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